Argyle's "Communicating Board Skills in Light of the NYC Comptroller and NYC Pension Funds National Boardroom Accountability Project – Version 2.0 (2020 UPDATE)" benchmarks changes in board skills proxy disclosure from 2018 to 2020 based on 143 of the 151 companies* that were targeted in 2017 by the NYC Comptroller and NYC Pension Funds’ to disclose a director qualifications matrix (see forms of letter here and here) (reported on here).
Among the key takeaways:
- Discussion of specific skills and experiences sought by the board increased 8% from 2018 - 2020, to 59% of all reviewed companies in 2020.
- Explanations of why specific skills and experience were sought by the board increased 13% from 2018 - 2020, to 36% of all reviewed companies in 2020.
- Graphic presentations of collective board skills and experience increased 14% from 2018 - 2020, to 38% of all reviewed companies in 2020.
- Individual director skill matrix disclosures like that sought by the NYC Comptroller/Funds increased 19% from 2018 - 2020, to 59% of all reviewed companies in 2020.
Among those that disclosed matrices, the disclosure of a number of skill sets, including corporate governance, environment, and human resources, increased by at least 50% from 2018 to 2020.*Of the 151 companies, one was acquired by a foreign company, three were acquired by another company that received the letter, two were acquired by a private company, and one became private.
This post first appeared in the weekly Society Alert!